The net amount of capital losses that aren't deductible for the current tax year but can be carried over into future tax years. Net capital losses (total capital losses minus total capital gains) can only be deducted up to a maximum of $3,000 in a given tax year. Any amounts exceeding $3,000 can be put toward offsetting capital gains in the current year or simply deducted in the next year(s). Taobiz explains Capital Loss Carryover Capital loss provisions can take some of the sting out of a losing investment, but investors must be careful of wash sale provisions, which prohibit repurchasing an investment within 30 days of selling it for a loss. If this occurs, the capital loss cannot be applied toward tax calculations, and is instead added to the cost basis of the new position, lessening the impact of future capital gains.
A type of equity where current equity owners can purchase additional equity if the company reaches certain financial goals or benchmarks. Financial goals include certain net income, earnings per share, economic value added and operating cash flow thresholds. Taobiz explains Carrot Equity Unlike a call option, the current shareholder does not have to pay a premium to purchase additional shares; they can be purchased from the company at a predetermined price without having to purchase an option or warrant. This term is British slang and likely originated from the practice of urging an animal onwards by attaching a carrot on a stick to its head.
An American billionaire investor with reputation for being a shrewd activist investor. Icahn is known for buying large amounts of stock in a specific company, and then pressuring the company to make significant changes to increase its value. Taobiz explains Carl Icahn As of 2008, Icahn's net worth was estimated to be in the range of $14 billion, placing him in top 50 of the richest people in the world. Some of his best known stock market activities are his effort in 2000 to get RJR Nabisco to spin off its food segment from its tobacco business, and his 2008 investment in Yahoo and the opinion that existing management had mishandled its negotiations of a possible combination with Microsoft.
The main securities market in Venezuela (the other two are the Maracaibo Stock Exchange and the Electronic Stock Exchange of Venezuela). The Caracas Stock Exchange (in Spanish, la Bolsa de Valores de Caracas) was founded in 1947 but traces its origins to 1805, when the Casa de Bolsa y Recreación de los Comerciantes y Labradores was established under Spanish colonialism. Taobiz explains Caracas Stock Exchange (CCS) .CR The Caracas Stock Exchange implemented an automated trading system in 1992 and conducts the majority of securities transactions in Venezuela, but it is one of the smaller stock exchanges in Latin America. Its main index is the Caracas Stock Index, which consists of 15 companies, and its regulatory body is the National Securities Commission.
1. In accounting, it is where costs to acquire an asset are included in the price of the asset. 2. The sum of a corporation's stock, long-term debt and retained earnings. Also known as "invested capital". 3. A company's outstanding shares multiplied by its share price, better known as "market capitalization". Taobiz explains Capitalization 1. For example, if a machine has a price of $1 million this value would be recorded in the assets, if there was also a $20,000 charge for shipping the machine then this cost would be capitalized and included in assets. 2. The capitalization of a firm can be overcapitalized and undercapitalized, both of which are potential negatives. 3. If a company has 1,000,000 shares and is currently trading at $10 a share, their market capitalization is $10,000,000.
A condition that triggers an investor to make a trade or take a specific action, such as a purchase, sale of the security, or the purchase or sale of a derivative (such as an option) of that security. Taobiz explains Cash Trigger If XYZ stock rises from $20 to $40 a share, an investor could sell the stock outright, or sell calls against the stock in an effort to garner income. Again, the cash price is ultimately the trigger or determinant that stimulates some future action.
A method of buying or selling securities by providing the capital needed to fund the transaction without relying on the use of margin. Cash trading is achieved by using a cash account, which is a type of brokerage account that requires the investor to pay for securities within two days from when the purchase is made. Taobiz explains Cash Trading Cash trading is unlike margin trading because the account holder cannot borrow money from the broker to fund the transaction. Cash trading involves less risk than margin trading, because risk is limited to only the cash invested.
The amount of cash that a company, investment fund or bank has on its books at a specific point in time. The cash position is a sign of financial strength and liquidity. In addition to cash itself, it will often take into consideration highly liquid assets such as certificates of deposit, short-term government debt and other cash equivalents. Taobiz explains Cash Position For companies, a large cash position is often a powerful signal of financial strength, while a small cash position is a potential warning sign. This is because cash is needed to fund operations and to pay off obligations. However, too large of a cash position can often signal waste, as the funds are generating very little return. A Bank is generally required to have a minimum cash position which is based upon the amount of funds it holds. This ensures that the bank has the ability to pay out its account holders if they demand funding. When an investment fund has a large cash position, it is often a sign that it sees few attractive investments in the market and is comfortable sitting on the sidelines.